Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Sale of a business

Greynewfs
Level 3

Taxpayer sold his business for one lump sum.  There were assets and inventory of goods for resale.  All assets had been fully depreciated.  How do I report this.  What do I do with the ending inventory on Sch C?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Solution

Accepted Solutions
abctax55
Level 15

Wouldn't ending inventory be zero, if all sold?

Sale of the inventory (even in a bulk sale) is reported just like any other sale of inventory - on Schedule C.

Assets sold go on F 4797.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"

View solution in original post

3 Comments 3
abctax55
Level 15

Wouldn't ending inventory be zero, if all sold?

Sale of the inventory (even in a bulk sale) is reported just like any other sale of inventory - on Schedule C.

Assets sold go on F 4797.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"
Greynewfs
Level 3

That is what I thought.  Just looking for confirmation, because that will make his SE tax thru the roof.  Thank you.

 

0 Cheers
abctax55
Level 15

Why?.... isn't he selling the inventory basically at cost?  That's been my experience in the past.

And any gain on the other items won't hit Sch C.

"*******Tax software is no substitute for a professional tax preparer*******
( Generic Comment )"